Which nonparametric test would we use to compare ratings assigned to n pairs of bonds by two different rating agencies, if the bonds are rated on an ordinal scale (Aaa, Aa, A, Baa, Ba B, etc.)?
A)Wald-Wolfowitz one-sample runs test
B)Wilcoxon signed-rank test
C)Wilcoxon rank sum (Mann-Whitney) test
D)Kruskal-Wallis test

Question

Quizplus · Accepted Answer

The Wilcoxon signed-rank test is used to compare two related samples, matched samples, or repeated measurements on a single sample to assess whether their population mean ranks differ. It is a nonparametric alternative to the paired t-test and is appropriate for comparing the ratings of n pairs of bonds by two different rating agencies on an ordinal scale.

Which Nonparametric Test Would We Use to Compare Ratings Assigned